The Managing Director of GCB Bank PLC, Farihan Alhassan, has attributed the recent strong performance of banks in Ghana to the impact of the Domestic Debt Exchange Programme (DDEP), noting that the policy compelled financial institutions to rethink their strategies and better respond to customer needs.

Ghana’s DDEP, introduced in 2022 as part of efforts to restructure the country’s debt and secure support from the International Monetary Fund (IMF), required banks and other financial institutions to exchange existing government bonds for new ones with longer maturities and reduced interest rates.

While the programme placed significant strain on bank balance sheets and profitability at the time, it has since reshaped the operating environment within the sector.

Speaking in an interview on Channel One TV’s The Point of View with Bernard Avle on Wednesday, April 1, Mr. Alhassan said the challenges brought on by the DDEP ultimately pushed banks to innovate and become more customer-focused.

“I think what DDEP did for most bankers was it forced us to think differently, to be a bit more clever with the customers. And so, you begin to understand customers’ pains from the beginning.

“Once you have a solution for the customers, they bring you their money. DDEP has played a big role in this, while it came with its problems. It forced banks to rethink,” he said.

He expressed the view that the evolving economic environment, marked by relative stability and declining interest rates, is also supporting the improved performance of banks.

Industry players have in recent months reported stronger earnings, improved asset quality, and renewed growth in lending, as the sector recovers from the immediate shocks of the debt restructuring programme.

For GCB Bank, this shift has translated into robust financial results, reflecting a broader trend across the banking industry as institutions adapt to a post-DDEP landscape.